Monday, July 06, 2009

Yep - Data Error

As expected, the NYSE has responded to the relentless hounding from Zerohedge regarding Goldman's suspicious disappearance from the weekly program trading report, admitting that they had a system error and that the report is not accurate. Turns out it was not related to a Russian spy stealing the code that maintains the integrity of our financial markets systems and thus threatening national security.

This report is usually published on Friday. This week, Friday July 3rd was a holiday, and I'm guessing that some junior guy was working on the report, rushed through it in an effort to get to the Jersey Shore, screwed up his copy & paste, and somehow dumped GS off the report.

Occam's Razor.



Sam said...

I bet that guy got his ear chewed off today by the higher ups at NYSE. But, the timing was extremely propitious for ZH/Taibbi et al. to exploit, wasn't it?

Great work on this (non)-story. You've been on top of this the entire time.

Anonymous said...

I would love to see any evidence that these reports are put together by junior spreadsheet monkeys.

Don't you think that something like this, in today's age, would easily be compiled by computer?

Anonymous said...

Also, according to the NYSE, "It was a system error"

That implies that yes, the process is indeed computerized. A copy&paste mistake would be a human error, not a "system error"

If this was honestly a "system error" (and not intentional manipulation of the report), that brings into question the validity of every report the NYSE has ever released...

Kid Dynamite said...

Indeed - it does bring into doubt other NYSE reports. What reports do you have in mind?

This report we're talking about is used by program trading firms as advertising to their customers. It's not national secrets. Firms want to report more volume, not less.

Anonymous said...

You ask everybody to not believe everything they read. But, then, you have no problem believing everything that is coming out GS' and NYSE's PR room.

Everyone else is a conspiracy nut, and GS, NYSE and all the wall street banksters are the beacon of truths.

Talk about double standards and being gullible.

Kid Dynamite said...

Anon, if you want to believe that GS and the NYSE (knowing that people were already asking questions about the volume numbers) conspired so that only GS's volume wouldn't be released during what everyone who reads the report already knows is the busiest program trading week of the year, and that the reason this happened is because a Russian financial spy stole Goldman's program trading model, and that somehow if the NYSE and GS conspired to hide the fact that GS traded a lot of shares again last week (as they have been trading every week for the past several months) in order to maintain national security, well then, I can't stop you from going with that.

Kid Dynamite said...

and, guests from ZH - no - i am not trying to "ride tyler's coattails" as one of you put it on the ZH comment thread. This blog seeks and makes zero revenue. I get hits in the hundreds, not the tens of thousands like ZH does. That's one reason i'm trying to HELP ZH make sure they have accurate data, so that they continue to be taken seriously by the people that matter. If TD's goal is to run a financial tabloid to maximize hits, well, he won't care. Since he doesn't have any pictures of naked women on ZH, I'm guessing page load maximization is not his sole goal. he clearly has excellent contacts, can write well, and has a relentless work ethic. I'm not his enemy

The first post I wrote about ZH


was in reaction to an absurd claim he made about CSFB and their ETF arb positions. I'm praying he doesn't write the post he said he was working on, which he described as:

"Zero Hedge is compiling materials to demonstrate the phenomenal gamble CS is taking by being the largest holder of the ETF-underlying pair trade. The ensuing implosion, once the market loses the invisible futures bid, will likely destroy Switzerland's second biggest bank and likely take down the country with it."

See, when you write posts like that, people who know stop listening. That doesn't make regulators jump up and listen, it makes them say "this ZH guy has no idea what he's talking about." I don't want that - I want Tyler to continue to thrive, as he clearly has a broader reach than I do - and can make more of an impact.

If you go back and read my previous posts, you'll know that I'm no sort of Wall Street sympathizer, despite my career history. I want all those fuckers to pay for their financial decisions - I'm not in favor of aid for any of them.

thanks for reading

Anonymous said...

Kid Dynamite, what exactly in my response made you reach that grand conclusion. Just because I called them 'banksters'? Where have I said that I believe everything that has been written about GS and NYSE.

I am only pointing to you your own preachings and your failure to practice them. You were very vocal in saying that readers should not believe everything they read and then you turn around and accept everything from GS and NYSE at face value. If you are cynical of an alternative view point, be it conspiratorial in nature, then shouldn't you display similar disposition towards information coming out of GS and NYSE. If you are not, then you cannot ask others to not believe everything they read, because you are doing something exactly opposite to what you are preaching, and that screams of a double standard.

Kid Dynamite said...

Anon - I think i've adequately addressed this already. I find the systems error (given the massive volumes) explanation infinitely more plausible than the grand intellectual property theft and national security threat explanation. It's that simple.

I understand what the PT report is used for, I understand the situation with both GS and the NYSE having already previously responded to TD's requests for explanations, and I think it's ludicrous that they'd try to manipulate the data during the week of the year that it's MOST scrutinized. It's not at all a case of me believing whatever the NYSE says (you keep saying "GS" - this has nothing to do with anything GS is saying). I simply find their explanation the most plausible of any that has been presented by anyone.

I agree that the NYSE should have caught this "system error," but I KNOW what it's like to be running out the door before a long weekend - does this excuse the mistake by the NYSE? of course not - but again, it makes it perfectly plausible that someone screwed up accidentally in failing to review the report, as opposed to a concerted effort to deceive.

i appreciate your attempt to point out hypocrisy on my part, as it's something that i despise. I hope I have explained myself.